2020 survey report

2020 Survey Report

In partnership with

POWERED BY FILINVEST HOSPITALITY CORPORATION AND CHROMA HOSPITALITY, INC.

ContentsIntroduction

Executive Summary

Recommendations

Survey Results

Acknowledgements

01

02

03

04

18

Whale Shark WatchingOSLOB, CEBU

Dear Valued Tourism and Travel Stakeholders, As the tourism industry faces its biggest halt with outright travel bans worldwide and major cities around the world deploying strict quarantine measures because of the COVID-19 pandemic, Chroma Hospitality Inc. and Filinvest Hospitality Corporation created this Domestic Sentiment Travel Survey in partnership with the Department of Tourism, Tourism Promotions Board and fellow travel associations.

This survey aims to help Tourism enterprises and the Philippine government prepare for recovery and understand the local market’s sentiments and behavior moving forward. In this report you will find interesting insights and key recommendations that may be useful to all our respective organizations. We look forward to the day when we can all travel and we join the nation in helping our fellow tourism partners rise again. Once again thank you to Department of Tourism, Tourism Promotions Board, Philippine Hotel Owners Association Inc., Hotel Sales and Marketing Association, Hotel and Restaurant Association of the Philippines, Tourism Congress of the Philippines, Pacific Asia Travel Association Philippine Chapter, Philippine Tour Operators Association, Philippine Travel Agencies Association and Tajara Hospitality Inc. Mabuhay ang Turismong Filipino! #WeHealAsOne

Sincerely,

James MontenegroCOUNTRY MANAGERCHROMA HOSPITALITY, INC.

Domestic Travel Sentiment Survey Report2

Executive Summary

The Domestic Travel Sentiment Survey was conducted from May 8 to 26, 2020 and received 7,515 respondents from across the Philippines. The survey asked questions regarding the effects of COVID-19 on respondents’ employment, their pre-COVID-19 travel history and post-COVID-19 travel expectations. This section provides an overview and the summary of key findings.

Immediate Domestic Demand Will Decrease from Previous Levels Due to Economic and Safety Concerns

Before COVID-19, 48% of the respondents said they travel at least 2 to 4 times a year. Post COVID-19, majority of the respondents indicated that their desire, frequency, and budget for travel will decrease. Concerns about income, job security and work demands affected their desire to travel as 66% of respondents experienced pay cuts resulting in 10% to 80% income reduction. Unsurprisingly, post COVID-19, 85% of respondents have rated health and safety as the most pressing concern, however only 22% were most concerned about availability of a COVID-19 vaccine before deciding to travel again.

Roughly 90% of Domestic Travel Demand Will Bounce Back in 12 months, Led by Leisure Demand

Domestic travel demand looks poised to substantially recover within a 12-month period. 29% of respondents desire to travel in 1 to 3 months and an additional 61% desire to travel in 6 to 12 months. Out of the 7, 515 respondents, 74% of respondents indicated that their first trip will be leisure oriented. Overall, domestic travelers’ preferences for their travel have not changed post COVID-19. Travelers still prefer to book directly with hotels and airlines and prefer full service 3- and 4-star hotels. Their average budget per day per person is Php 1,000 – Php 3,000 including accommodations, transportation and tours.

Of all respondents, Millennials (26 – 40 years old) and Generation X (41 – 55 years old) will be the first group to travel domestically. On average they will start traveling in 6 months to 1 year.

Essential and Technical Industries to Lead Business Travel Demand

Roughly 26% of respondents will travel within the first 3 months for business. We expect the following industries to lead this travel demand: BPO, Construction, Electrical, Gas and Water, Mining and Quarrying, Professional, Technical Activities, Water, Sewerage, Waste Water Management and Remediation Activities.

Air Travel is the Preferred Mode of Transportation

Given the archipelagic nature of the Philippines, 69% of respondents chose air travel as their preferred mode of transportation. Travel by car had a strong showing at 29% which can be linked to Baguio and “Other Luzon” being among the top preferred destinations.

Health and Safety Has Become the Number One Booking Factor

Respondents ranked health and safety as the most important domestic travel consideration, followed by location and price. The most important health and safety protocols for travelers were enhanced room sanitation, public area sanitation and hand sanitizers being available in all public areas. While considering health and safety protocols, most respondents expected the following services, amenities and practices in accommodation establishments: in-room dining, daily room housekeeping, hotel staff in PPE, mini bar and gift shop. On the other hand, respondents were less concerned about the availability of the following: meeting room facilities, swimming pool, buffet food service, spa, and gym.

Key Findings:


Recommendations

Encourage and Boost Leisure Travel

Once permitted to travel, 74% will travel for leisure, staycations and visiting friends and family. This is a good sign for tourism stakeholders and it is important to ease leisure travel restrictions while ensuring that safety guidelines and protocols are consistently implemented by the entire tourism ecosystem (hotels, airlines, airport, transportation and travel agencies).

Given the preference for leisure travel, government and tourism stakeholders should double up efforts to safely open up leisure destinations. Some suggestions among others, include a more aggressive phased reopening of locations with low to zero COVID-19 cases, creating COVID-19 testing facilities in leisure destinations and strict implementation of accepted safety protocols.

Recovery Demands Collective and Collaborative Effort

Respondents in this survey placed health and safety as the number one factor in their travel decisions. To manage these concerns and regain the confidence of the traveling public, the entire travel ecosystem must work together to demonstrate the ability to keep the guests and staff safe at every touchpoint of the travel experience. We encourage our industry partners to establish a Culture of Clean* type program in their establishments to help mitigate the fear of traveling.

For hotels, these measures should include enhanced room sanitation, enhanced public area sanitation and readily accessible hand sanitation stations. Respondents expect services such as in-room dining, daily room housekeeping, hotel staff in PPE, and amenities that will keep them from having to go out of the hotel like the mini bar and gift shop.

Since respondents indicate a strong preference for air travel, it would be beneficial for the accommodation sector, travel agents and other tourism providers to align their health and safety protocols with those of the airports and airlines.

Government Support is Needed to Help Tourism Business to Recover

The survey results strongly indicate that domestic travel demand will take a year or more to recover. Travelers remain cautious amidst concerns over health, income and work. This indicates that demand will be suppressed and revenues in the industry will continue to stay at historic lows for the foreseeable future. To minimize the impact of this health crisis to the Philippine tourism industry, it is crucial for the government to extend financial assistance and ease tax obligations to tourism business owners.

It is clear that the impact of the pandemic to the tourism business has been severe and it will take more than the government stimulus package to help the industry recuperate. There is a need to strengthen public and private partnerships and encourage all stakeholders in the tourism industry to come together and help recover from the damage this pandemic has caused.

PUERTO PRINCESA, PALAWAN CLARK, PAMPANGA TAGAYTAY CITY, CAVITEUnderground River Mimosa Plus Golf Course Taal Lake and Volcano

* To learn more about the Culture of Clean guidelines, please visit https://bit.ly/cultureofclean

Survey Results


Respondent Profile

Total Responses: 7,515from May 8 to 26, 2020

Age Group

34% 66%MALE FEMALE

There were 7,515 respondents who participated in the survey. The respondents represented all age groups with most respondents coming from the Millennials (26 to 40 year old) followed by the Generation X (41 – 55 year old). 66% of the respondents were female.

The respondents are from all regions with most originating from Metro Manila, Cavite, and Cebu.

Province of Residence

Rizal

IloiloOthers

Metro Manila

Pampanga

Cavite

Batangas

Cebu

Davao del Sur

Laguna

Bulacan

Industry

93% of the respondents are either employed or self employed of which 31% are working in the Tourism sector with the balance working in other industries. Please note that survey results and conclusions stay the

same even if the tourism respondents were excluded from the survey.

Employed Self Employed Not Employed Retired

Employment Status Monthly Net Income

72% 21% 4% 3%

under Php 35,000Php 35,000 - Php 70,000Php 70,000 - Php 120,000

Php 120,000 - Php 200,000above Php 200,000

Real Estate

6%

Healthcare

5%

Tourism

31%

Banking & Finance

7%

Others

17%

17-25 26-40 41-55 56-76

9% 50% 30% 11%

51%

9%7%

5%4%

3%2%2%2%

1%

14%


Immediate Domestic Demand Will Decrease from Previous Levels Due to Economic and Safety Concerns

Changes in Domestic Travel HabitsAfter COVID-19 Pandemic

Pre-COVID 19: How Often will RespondentsTravel Domestically

Decrease No Change Increase

Before the pandemic, 48% of the respondents travel at least 2 - 4 times a year. Post-COVID-19, majority of the respondents indicated that their desire, frequency and budget for travel will decrease.

Income, work demands and availability of leave credits are key concerns for individuals considering domestic travel.

Concern on Travel CapabilityDue to Income and Savings

Concern on Travel Capability Due to Too Much Work

Concern on Travel Capability Due to Lack of Leave Credits

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

RANKING

4

20%

5

32%

3

32%

1

7%

2

9%

(1 - LEAST CONCERN, 5 - MOST CONCERN)

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

4

21%

5

24%

3

32%

1

10%

2

13%

RANKING(1 - LEAST CONCERN, 5 - MOST CONCERN)

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

4

14%

5

26%

3

25%

1

21%

2

14%

RANKING(1 - LEAST CONCERN, 5 - MOST CONCERN)

0

1000

2000

3000

4000

5000

Desire Frequency Budget

NU

MB

ER O

F R

ESPO

ND

ENTS

0

30%

40%

50%

10%

20%

CAN’TREMEMBER

EVERYFEW

YEARS

ONCEA YEAR

2-4TIMES

A YEAR

MORETHAN

4 TIMESA YEAR

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

1%

8%

20%

48%

23%


Top Reasons for Income Reduction

Temporary Business ClosureLess Working DaysPay Cut

Loss of EmploymentPermanent Business ClosureOthers

Unsurprisingly, health and safety was overwhelmingly a critical concern when makingdomestic travel decisions but interestingly 60% of the respondents said they will travel even

without a vaccine for as long as pandemic is controlled.

Expected Monthly Income Reduction Due to COVID-19

0% No impact10%20%30%

50%

40%

60%70%80% and above

66% of respondents expect to see a 10% to 80% income reduction driven by temporary business closure and reduced working hours.

Health and Safety as Main Factorin Domestic Travel Above Others

Travelling as Long as Pandemic is Controlled Even Without Vaccine

34%

8%

10%

9% 5%

16%

11%

3%4%

66%

34%

32% 14%

6%1%

13%

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

RANKING

4

10%

5

85%

3

4%

1

1%2

0%


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS

RANKING

4

18%

5

22%

3

27%

1

19%

2

14%


0%

10%

5%

20%

25%

15%

30%


NU

MB

ER O

F R

ESPO

ND

ENTS

Roughly 90% of Domestic Travel Demand Will Bounce Back in 12 months, Led by Leisure Demand

How Soon Will People Travel Domestically After Travel

Restrictions Are LiftedNature of Travel After Restrictions Are Lifted

26 - 40 years old41 - 55 years old56 - 76 years old

17 - 25 years old

Domestic travel demand looks poised to substantially recover within a 12-month period. In the short term (1 - 3 months), about 29% of respondents desire to travel domestically.

In the medium term (6 - 12 months) an additional 61% of respondents desire to travel domestically. Early demand is predominately leisure in nature as 74% of the respondents indicated.

74%

BUSINESSLEISURE

26%

PER

CEN

TAG

E O

F R

ESPO

ND

ENTS


How Soon Will People Travel Domestically After Travel Restrictions Are Lifted (by Age Group)

Accommodation Preferences

Post-COVID-19Pre-COVID-19Post-COVID-19Pre-COVID-19

Estimated Budget Spend Per Person/DayRefers to domestic trip inclusive of accommodation, food, transportation and tours

Millennials (26 - 40 years old) and Generation X (41 - 55 years old) are the most eager to travel domestically.

26 - 40 years old 41 - 55 years old 56 - 76 years old17 - 25 years old

Respondents still prefer to book directly with hotels and airlines and prefer full service 3- and 4-star hotels.Their average budget per day per person is Php 1,000 – Php 3,000 which include

accommodations, transportation and tours.

0

100

200

300

400

500

600

700

800

900

NU

MB

ER O

F R

ESPO

ND

ENTS

BELOWPhp 1,000

ABOVEPhp15,000

Php 1,000-

Php 3,000Php 3,000

-Php 5,000

Php 5,000-

Php 10,000Php 10,000

-Php 15,000

0

500

1000

1500

2000

2500

3000

HOSTEL FRIENDS& FAMILY

BnB 2-STARHOTEL

3 TO 4-STARHOTEL

5-STARHOTEL

0

500

1000

1500

2000

2500

3000

3500

4000

NU

MB

ER O

F R

ESPO

ND

ENTS

NU

MB

ER O

F R

ESPO

ND

ENTS


Essential and Technical Industries to Lead Business Travel Demand

The tables above indicate the respondents from different industrieswho will travel within 1 - 3 months after the government lifts travel restrictions.

The bar graph above show the percentage of respondents per industry who will travel within 1 month. Among these groups, respondents from the BPO and Mining Industries are most likely to travel for business related activities.

The bar graph above show the percentage of respondents per industry who will travel within 3 months. Based on the response, the same industries are most likely to travel for business related activities.

Out of the Total Respondents, 17% will Travel 3 Months After the Restrictions are Lifted

Out of the Total Respondents, 12% will Travel 1 Month After the Restrictions are Lifted

25%20%15%10%5%0%

Agriculture, Forestry and Fishing

Arts, Entertainment and Recreation

Banking & Finance

Business Process Outsourcing (BPO)

Construction

Education

Electricity, Gas and Water

Gaming

Healthcare

Information Technology

Manufacturing

Mining and Quarrying

Other

Real Estate

Retail

Tourism (Hospitality & Leisure)

Transportation and Storage

Water Supply, Sewerage,Waste Management and Remediation Activities

23%

15%

21%

17%

PERCENTAGE OF RESPONDENTS WHO WILL TRAVEL

35%25% 30%20%15%10%5%0%



Banking & Finance


Construction

Education


Gaming

Healthcare


Manufacturing


Others

Real Estate

Retail



Water Supply, Sewerage,Waste Management and Remediation Activities 33%

25%

23%

24%



The bar graph above show the percentage of respondents per industry who will travel within 6 months. Based on the response, the same industries are most likely to travel for business related activities.

The bar graph above show the percentage of respondents per industry who will travel within 1 year. Based on the response, the same industries are most likely to travel for business related activities.

Out of the Total Respondents, 32% will Travel 1 Year After the Restrictions are Lifted

Out of the Total Respondents, 29% will Travel 6 Months After the Restrictions are Lifted

35% 40%25% 30%20%15%10%5%0%



Banking & Finance


Construction

Education


Gaming

Healthcare


Manufacturing


Others

Real Estate

Retail




32%

31%

33%

34%


35% 40%25% 30%20%15%10%5%0%



Banking & Finance


Construction

Education


Gaming

Healthcare


Manufacturing


Others

Real Estate

Retail




37%

36%

35%

37%


The tables above indicate the respondents from different industrieswho will travel within 6 months - 1 year after the government lifts travel restrictions.


100%90%80%70%60%50%40%30%20%10%0%

Others


Real Estate


Manufacturing


Healthcare

Gaming


Education


Banking & Finance





Retail

Construction

Overall, the nature of travel is 74% Leisure and 26% Business.

Respondents from different industries share the same intentions to travel for leisure, staycation and visit families and friends given a chance to travel again except for the Gaming industry respondents.

LeisureBusiness

Nature of Travel per Industry

PERCENTAGE OF RESPONDENTS


Air Travel is the Preferred Mode of Transportation

Air Land Sea Air Land Sea

Post COVID-19, majority of the respondents across all age groups prefer to travel by air followed by land travel. An increase in land travel is expected as

the top 10 preferred destinations include spots such as Baguio and “Other Luzon”.

As soon as travel is allowed, the respondents selected their top 3 destinations and majority prefer to travel to Boracay, Palawan and “Other Luzon”.

Preferred Mode of Transportation

Top 10 Travel Destinations

Preferred Mode of Transportation(by Age Group)

PERCENTAGE OF RESPONDENTSDESTINATION

BoracayPalawan

Other LuzonCebu

BaguioManilaBohol

TagaytayOther Visayas

Batangas

14%12%9%8%8%6%5%5%5%4%BORACAY ISLAND, AKLAN

Station Zero

0

500

1000

1500

2000

2500

3000

NU

MB

ER O

F R

ESPO

ND

ENTS

3500

4000

17 - 25years old

26 - 40years old

41 - 55years old

56 - 76years old

29%

69%

2%


Location Health andSafety

Protocols

Price GuestService

Amenities Architecture/Interior Design

Brand LoyaltyProgram

0

1

2

3

4

5

4.053.85 3.84 3.72 3.55

3.122.91

2.82

Health and Safety Has Become the Number One Booking Factor

Pre-COVID-19 Hotel Accommodation Factors Rating

Post-COVID-19 Hotel Accommodation Factors Rating

Post-COVID-19, health and safety protocols have become the most important booking factor followed by location and price in choosing hotel accommodations.

Price GuestService

Amenities Architecture/Interior Design

Brand LoyaltyProgram

Location

4.08

Health andSafety

Protocols

4.183.95 3.77 3.59

3.10 3.052.82

0

1

2

3

4

5

RA

TIN

G B

ASE

D O

N IM

PO

RTA

NC

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- LE

AST

IMP

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5 -

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RTA

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)R

AT

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BA

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ON

IMP

OR

TAN

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(1 -

LEA

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RT

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- M

OST

IMP

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TAN

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Respondents gave high importance on enhanced room sanitation, enhanced public area sanitation and hand sanitizers in all public areas.

Post-COVID-19 Protocol Rating

Expected Hotel Amenities Post-COVID-19

Majority of the respondents expect in-room dining, daily housekeeping and hotel staff in PPE. It is interesting to see that the minibar and gift shop ranked 4th and 5th among the top guest expectations.

eas

TemperatureScan

LuggageSanitation

All guests arerequired to

wear masks inPublic Ar

Hand Sanitizerin all

Public Areas

EnhancedPublic AreaSanitation

EnhancedRoom

Sanitation

0

1

2

3

4

5

3.72

4.124.194.204.294.324.34

In-room Dining

PERCENTAGE OF RESPONDENTS

RA

TIN

G B

ASE

D O

N IM

PO

RTA

NC

E(1

- L

EA

ST IM

PO

RT

AN

T, 5

- M

OST

IMP

OR

TAN

T)


Based on the comments and feedback, the respondents shared that they will travel provided health and safety protocols are in place. Transparency and communication of the safety measures being done by the

hospitality and tourism industry are vital in convincing the market to travel again.

Sinulog Festival

Banaue Rice Terraces

National Musem

Hot Air Balloon Festival

CEBU CITY, CEBU

BANAUE, IFUGAO

MANILA CITY, METRO MANILA

CLARK, PAMPANGA


AcknowledgementsThe Domestic Travel Sentiment Survey was initiated and created by Filinvest Hospitality Corporation and

Chroma Hospitality Inc. populated with the assistance of the following stakeholders:

PRESIDENTPACIFIC ASIA TRAVEL ASSOCIATION, PHILIPPINE CHAPTER

Mr. Eugene Yap

Ms. Cyndy Tan-Jarabata

Mr. Jose Clemente, Jr.

Mr. Arthur Lopez

Mr. Bob Zozobrado

Ms. Christine IbarretaAtty. Antonette Allones

Mr. Cesar Cruz

Mr. Ritchie Tuanio

PRESIDENTHOTEL & RESTAURANT ASSOCIATION OF THE PHILIPPINES

PRESIDENTTAJARA HOSPITALITY, INC.

PRESIDENTTOURISM CONGRESS OF THE PHILIPPINES

PRESIDENTPHILIPPINE HOTEL OWNERS ASSOCIATION, INC.

PRESIDENTHOTEL SALES & MARKETING ASSOCIATION

CHIEF OPERATING OFFICERTOURISM PROMOTIONS BOARD PHILIPPINES

PRESIDENTPHILIPPINE TOUR OPERATORS ASSOCIATION

PRESIDENTPHILIPPINE TRAVEL AGENCIES ASSOCIATION

Sec. Bernadette Romulo-Puyat Usec. Art BoncatoSECRETARY

DEPARTMENT OF TOURISMUNDERSECRETARY

DEPARTMENT OF TOURISM

This initiative is driven by

Mr. James MontenegroMr. Francis GotianunCOUNTRY MANAGER

CHROMA HOSPITALITY, INC.SENIOR VICE PRESIDENT

FILINVEST HOSPITALITY CORPORATION

In partnership with

POWERED BY FILINVEST HOSPITALITY CORPORATION AND CHROMA HOSPITALITY, INC.

2020 survey report

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